As tax season nears, families are getting ready for updates to the child tax credit.
The review approved last summer secures higher benefit amounts, specifies eligibility, and revises how parents can claim credits for 2026. While a lot of what’s in place looks familiar, some details could impact how much money families get and when.
Detail
The Tax Cuts and Jobs Act (TCJA), implemented in 2018, increased the deduction from $1,000 to $2,000 per child. Initially, this increase was temporary, set to expire at the end of 2025. However, the recently passed One Big Beautiful Bill Act made the higher credit permanent and kept the expanded income thresholds for eligibility.
The IRS indicates that starting in 2025, the child tax credit cap will rise from the previous $2,000 limit to $2,200. This will apply to tax returns for the 2025 year, which households file by April 2026. The $2,200 cap will remain for that filing period and will be adjusted for inflation starting with the 2027 tax year.
Not every credit is refundable, but a substantial portion is. According to the IRS, the refundable part of the child tax credit will stay at $1,700 in 2026, the same as in 2025. This refundable amount is what families can receive as a refund if their total tax owed is less than this deduction.
The new law also reinforces background checks that were first introduced under the TCJA. To claim the credit, the child needs a Social Security number, and the taxpayer claiming the credit must adhere to Social Security number requirements as well. For couples filing jointly, at least one parent needs a Social Security number to qualify.
Eligibility still hinges on meeting dependent tests. To claim the credit, a parent must claim a child as a dependent, which could be a son or daughter, an adopted or foster child, sibling, niece, nephew, or grandchild. The child needs to be under 19, or under 24 if they’re a full-time student for at least five months, or have a permanent disability. Additionally, the child must live with the taxpayer for more than half the year and can’t provide more than half of their own financial support.
According to the Tax Policy Center, nearly 90% of households with children are expected to receive the Child Tax Credit in 2025, averaging about $2,520. This figure is higher than the per-child limit because many households qualify for multiple children.
How long will it take to receive my refund?
Most taxpayers should see their refunds fairly quickly. The IRS usually issues refunds in about 21 days for those who file electronically and choose direct deposit. The deadline for submitting federal income tax returns for the 2025 tax year is April 15, 2026.
However, for returns that include certain credits—like the child tax credit or additional child tax credit—the wait might be longer. This delay is often a precaution to minimize fraud, so some families may have to hold on a bit longer before seeing their refunds.
